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Mobius Capital Fund Manager Reveals His Downside Target for Bitcoin, but Says Digital Assets are Here to Stay

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Source: a video screenshot, Youtube, Bloomberg Markets and Finance

The veteran investor Mark Mobius has said bitcoin (BTC) could fall to the $10,000 level, but he is still amazed by how well bitcoin prices “have held up” in the currently bearish environment.

Speaking in an interview with Bloomberg on Monday this week, Mobius, who is known as one of the world’s leading experts on emerging market investments, made it clear that although he is impressed by bitcoin’s performance, he wouldn’t invest in it himself. And that goes both for his own and his clients’ money, he said.

“It’s too dangerous,” Mobius said.

The legendary investor added that he believes bitcoin and crypto more broadly “is here to stay” given how many investors still have faith in it. “It’s amazing how Bitcoin prices have held up” despite the collapse of crypto exchange FTX, he said.

Since FTX filed for bankruptcy on November 11, the price of bitcoin is now more or less unchanged, trading at just over $17,000 as of press time.

A drop to $10,000 would take bitcoin down to a level not seen since October 2020, before the massive bull-run that started later that year and continued into 2021. The level marks a major support zone in the chart created by market highs in late 2019 and early 2020.

Weekly chart of BTC/USD with red support line. Source: TradingView

Long-time crypto skeptic

A long-time crypto-skeptic, Mobius has in the past called crypto a “religion” rather than an investment. He has also warned that risks in the crypto market could spread to the broader financial market and end up dragging the US stock market lower.

Still, Mobius has also shared positive views on bitcoin in the past. In 2019, he noted that bitcoin – like all currencies – is based on faith, and said he might buy it if adoption picks up.  

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Mark Mobius worked for Franklin Templeton Investments for more than 30 years, and in 2018 co-founded Mobius Capital Partners LLP together with fellow Templeton portfolio manager Carlos von Hardenberg. Mobius Capital Partners specializes in emerging market investments.

Source: crypto news

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